Microsoft's fourth quarter earnings and sales missed expectations by a wide margin as the PC market slowdown and a writedown of Surface RT inventory painted a bleak picture.
The company reported fourth quarter earnings of $4.97 billion, or 59 cents a share, on revenue of $19.9 billion. The results include a $900 million inventory writedown for Surface RT that amounts to 7 cents a share. No matter how you slice it Microsoft was walloped.
Wall Street was expecting Microsoft to report fourth quarter earnings of 75 cents a share on revenue of $20.73 billion. For the year, Microsoft reported earnings of $2.58 a share on revenue of $77.85 billion.
Amy Hood, CFO of Microsoft, said the results were "impacted by the decline in the PC market", but the enterprise business was strong.